Unlike centralized exchanges, decentralized exchanges aren’t coordinated by one entity. Instead, they run on a distributed ledger, like cryptocurrencies themselves do.

This structure means that a decentralized exchange does not hold customers’ funds, positions, or information, and only serves as a matching and routing layer for trade orders.

What is an Alternative Trading Platform ?

An alternative trading system is any organization, or system (1) that provides a market place or facilities for bringing together purchasers and sellers of securities or for otherwise performing with respect to securities the functions commonly performed by a stock exchange and (2) that does not (i) set rules governing such organization, or system, or (ii) discipline subscribers other than by exclusion from trading.